USAID awards $38.7M contract for technical services to TETRA TECH ES, INC
Contract Overview
Contract Amount: $38,772,134 ($38.8M)
Contractor: Tetra Tech ES, Inc.
Awarding Agency: Agency for International Development
Start Date: 2021-01-04
End Date: 2026-01-03
Contract Duration: 1,825 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SINAR
Plain-Language Summary
Agency for International Development obligated $38.8 million to TETRA TECH ES, INC. for work described as: SINAR Key points: 1. Contract value of $38.7 million over 5 years. 2. Competition method is Full and Open, indicating broad market access. 3. Risk is moderate due to Cost Plus Fixed Fee pricing structure. 4. Sector is Professional, Scientific, and Technical Services.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee aligns with performance. Benchmarking against similar contracts for 'All Other Professional, Scientific, and Technical Services' is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to competitive pricing.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market efficiency and can lead to better value.
Public Impact
Supports international development efforts through specialized technical services. Potential for job creation within the professional services sector. Ensures continued agency operations in critical areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can incentivize cost overruns if not managed tightly.
- Lack of specific small business participation noted.
Positive Signals
- Full and open competition promotes market fairness.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, which is broad and encompasses a wide range of specialized expertise. Spending in this sector is significant across government agencies for consulting, research, and technical support.
Small Business Impact
The data indicates that small business participation was not a specific set-aside or requirement for this contract. Further analysis would be needed to determine if small businesses were indirectly involved as subcontractors.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure, ensuring that costs are justified and the fixed fee is appropriate for the services rendered. The Agency for International Development's contracting office is responsible for this oversight.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure.
- Lack of specific small business set-aside.
- Broad NAICS code may obscure specific cost efficiencies.
- Contract duration of 5 years.
Tags
all-other-professional-scientific-and-te, agency-for-international-development, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $38.8 million to TETRA TECH ES, INC.. SINAR
Who is the contractor on this award?
The obligated recipient is TETRA TECH ES, INC..
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $38.8 million.
What is the period of performance?
Start: 2021-01-04. End: 2026-01-03.
What is the typical profit margin for Cost Plus Fixed Fee contracts in this sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the professional, scientific, and technical services sector can vary widely based on contract complexity, risk, and agency policies. Generally, the fixed fee is negotiated as a percentage of the estimated direct costs. While specific benchmarks are proprietary, agencies aim for fees that are fair and reasonable, typically ranging from 5% to 15% of the estimated cost, but this can be influenced by market conditions and competition.
How does the 'All Other Professional, Scientific, and Technical Services' NAICS code compare to more specific categories in terms of cost efficiency?
The broad 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) can make direct cost efficiency comparisons challenging. More specific codes often allow for better benchmarking against specialized services. However, the full and open competition used here suggests that the market determined a competitive price for this broad category, implying reasonable efficiency given the scope.
What are the key performance indicators (KPIs) that USAID will use to measure TETRA TECH ES, INC.'s effectiveness?
While not detailed in the provided data, USAID typically establishes Key Performance Indicators (KPIs) for contracts like this, focusing on service delivery quality, timeliness, adherence to technical specifications, and achievement of project objectives. These KPIs are crucial for managing the CPFF contract and ensuring value for money. Performance reviews and regular reporting would track progress against these metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 72049720R000004
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc.
Address: 1320 N COURTHOUSE RD STE 600, ARLINGTON, VA, 22201
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,772,134
Exercised Options: $38,772,134
Current Obligation: $38,772,134
Actual Outlays: $30,023,466
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $12,586,060
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 7200AA19D00029
IDV Type: IDC
Timeline
Start Date: 2021-01-04
Current End Date: 2026-01-03
Potential End Date: 2026-01-03 00:00:00
Last Modified: 2025-06-13
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